The indicator features the complex calculation algorithm that takes into account the closing price in relation to the range of maximum and minimum prices for a certain period, as well as market volatility. The algorithm allows identifying market entry points, at which existing conditions allow a high probability of a significant price movement sufficient for a good trade.
Since the indicator properties are close to oscillators, I recommend using it together with a trend indicator.
The indicator has only one adjustable parameter, which determines its sensitivity.
The indicator signals are activated after the bar is fully formed. The indicator is non-repainting.
- RISK - indicator sensitivity.
- When a buy signal appears (blue cross below the last bar Low), a pending buy stop order is placed one point above the bar High (plus spread);
- When a sell signal appears (red cross above the last bar High), a sell stop order is placed one point below the bar Low;
- Indicator signal values are balanced for setting protective stop orders.